India regulator asks brokers to accept orders during closing auction transition to boost liquidity, brokers say
India’s markets regulator has asked brokers to accept orders during the five-minute transition to the closing auction session (CAS) to improve liquidity and price discovery under the new closing mechanism for stocks, three brokers told Reuters . The CAS is a 20-minute auction window that begins at 3:15 p.m. IST after regular trading ends and is used to determine the closing levels of stocks.…
India's markets regulator has instructed brokers to accept orders during a five-minute window between the end of regular trading and the start of the closing auction session, according to three brokers. This move aims to enhance liquidity and price discovery in the new closing mechanism for stocks. Currently, orders are not taken during this crucial five-minute period, which is allocated for reference price calculations and the transition from continuous trading to the closing auction session.
The Securities and Exchange Board of India (SEBI) believes that accepting orders during this window will boost market participation and improve price discovery, though brokers are not authorized to speak publicly on the matter. Starting in September, SEBI will allow after-market orders between 3:15 and 3:20 pm IST in an effort to increase CAS efficiency.
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